Price Anomaly Setting Up in E-mini Nasdaq-100 Futures (NQ)

Chris Vermeulen  |

Our research team has been alerting our followers to a potentially deep price retracement setting up in the Nasdaq and other US stock market majors. Although the recent price activity has pushed to newer recent highs this week, as you will see in the chart below, our Adaptive Dynamic Learning (ADL) price modeling system is suggesting that a “price anomaly” has set up.

These types of price anomalies are indicative of when price moves in an extended way outside of or away from the ADL predicted price levels. On the chart below, of the E-mini Nasdaq-100 Futures (NQ), you'll see the current setup with the predicted price anomaly highlighted as a RED SQUARE. This NQ ADL price pattern consists of 13 unique previous ADL instances and suggests there is a greater than 65% likelihood the prices will fall towards the 6700 level in the NQ over the next few days.

Our ADL price modeling system also confirms this on the weekly chart. With 84 unique instances of an ADL price pattern, we are expecting a 65 to 95% probability that prices will fall to below 6700 within the next 3 to 5 weeks.

Both the daily and weekly ADL predictive modeling systems are suggesting that the upside move is over. The price anomaly could continue for a few more days, as we've seen it happen in the past where price continues to push away from the ADL levels – this is what makes a price anomaly so exciting. When price moves away from levels that our ADL price modeling system suggests are going to happen in the future, it allows us to set up trades expecting the price to revert toward the ADL levels. So in this case, we can start setting up trades near 7300 for the NQ to retrace to near 6700 – a 600 point swing.


If you want to join a group of professional traders, researchers, and friends, take a look at our trading newsletter to learn how we can help you find and execute better trades each month. We believe 2019 and 2020 will be incredible years for skilled traders and we are executing at the highest level we can to assist our members. In fact, we are about to launch our newest technology solution to better assist our members in creating future success.

Our team has 53 years of experience in researching and trading that makes analyzing the complex and ever-changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

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Chris Vermeulen
Technical Traders Ltd.

DISCLOSURE: We are net short the technology sector with TECS


The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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